Pružanje nerevizorskih usluga nerijetko se ističe u kontekstu potencijalnog ugrožavanja neovisnosti revizora koja može imati reperkusije na izvješće neovisnog revizora. Cilj je ovog istraživanja utvrđivanje utjecaja razine upravljanja zaradom na isticanje pitanja vremenske neograničenosti poslovanja u revizorskom izvješću, uzimajući u obzir moderatorsko djelovanje pružanja nerevizorskih usluga od strane eksternog revizora. Razina upravljanja zaradom procijenjena je s pomoću vrijednosti diskrecijskih obračunskih stavki koja je izračunata korištenjem Modificiranim Jones modelom. Uzorak istraživanja obuhvaća 93 nefinancijska trgovačka društva koja su kotirala na tržištu kapitala u Republici Hrvatskoj u vremenskom razdoblju od 2014. do 2018. Podaci prikupljeni za navedeno razdoblje analiziraju se primjenom logističke regresije za panel podatke. Na temelju rezultata istraživanja može se zaključiti kako pružanje nerevizorskih usluga od strane revizorskog društva nema statistički značajan utjecaj na odnos upravljanja zaradom i isticanja pitanja vremenske neograničenosti poslovanja u izvješću neovisnog revizora.
The recent outbreak of coronavirus has caused the worst global economic crisis in the last few decades. A substantial number of companies have experienced severe economic difficulties and were tempted to adjust their financial figures in order to reach certain business thresholds. Maintaining an existing level of dividend payments is a powerful incentive to engage in such activities.The aim of this article was to estimate the effect of the economic crisis caused by the COVID-19 pandemic on the relationship between the estimated level of earnings management and dividend payments made by companies.Research models were estimated using panel analysis. The Modified Jones model was utilized to assess the level of earnings management. A total of 56 companies listed on the Zagreb Stock Exchange in the Republic of Croatia with their financial data from 2015 to 2020 were included in the research sample.Unlike in the case of absolute and income-decreasing discretionary accruals, results indicated that the economic crisis caused by the COVID-19 pandemic positively affected the relationship between earnings management and dividend payments in the case of income-increasing accruals regarding companies that made regular dividend payments.In conclusion, the economic crisis caused by the COVID-19 pandemic was an additional incentive for certain companies to perform income-increasing earnings management to reach the desired level of dividend payments.
Background: Since external auditors possess the expertise necessary for detecting manipulations in financial statements, they should also take into account earnings management that could lead to it. In that context, auditor’s independence, which can be affected by auditor’s rotation, is of utmost importance. Objectives: This paper aims to examine the moderating effect of auditor rotation on the relationship between the extent of financial manipulation and the type of auditor’s opinion for companies listed on the Zagreb Stock Exchange in the Republic of Croatia. Methods/Approach: A panel analysis with logistic regression is conducted to test the research hypothesis. The sample consists of 210 observations during the three years from 2015 to 2017. Results: Results show a significant positive relationship between auditor rotation in a current financial year and auditor’s opinion. Furthermore, there is a negative, but the statistically insignificant moderating effect of auditor rotation in a current financial year on the relationship between financial manipulation and auditor’s opinion, as well as the statistically insignificant moderating effect of auditor rotation frequency over five years on the relationship between financial manipulation and auditor’s opinion. Conclusions: It is not likely that auditors take earnings management into account when generating their opinion on financial statements, and auditor rotation is not proven to be an adequate stimulus in that context.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.